2019 (1) TMI 1912 - HC - Indian Laws

Seeking to leave to defend except on condition of securing the Plaintiff s claim - HELD THAT - The suit is decreed against the Defendant in the amount of 1, 21, 71, 243.00 with further interest on the principal amount of 1 crore at the rate of 12% per annum from the date of the suit till payment or realisation - This being a Commercial Suit the Plaintif is also entitled to a decree for costs under amended Section 35 of the Code of Civil Procedure 1908. The Plaintif has paid the Court fees of 1, 70, 000/-. The reasonable litigation costs thereafter is estimated at 3.5 lakhs. The Plaintiff will be entitled to a decree on costs without interest in the amount of 5.20 lakhs - Drawn up decree expedited.

Summary

Issues Involved:
1. Entitlement to leave to defend and deposit requirement.
2. Claim details and defense arguments.
3. Evidence submission and decree for the plaintiff.
4. Decree for costs under Section 35 of CPC.

Entitlement to Leave to Defend and Deposit Requirement:
The judgment by AK Menon J highlighted that the defense presented was considered "moonshine," leading to the conclusion that the defendant was not entitled to leave to defend unless securing the plaintiff's claim by depositing a specified amount within eight weeks. The failure to make the deposit resulted in a Non-Deposit Certificate being issued, establishing the plaintiff's entitlement to a decree against the defendant.

Claim Details and Defense Arguments:
The suit involved a claim of ?1,21,71,243, comprising a principal sum and interest arising from dishonored cheques. The plaintiff contended that an amount was advanced to the defendant for business purposes, with repayment terms specified. Despite attempts by the defendant to contest liability, the affidavit filed admitted receipt of funds but claimed an oral agreement for repayment after 30 months, which was deemed an attempt to avoid liability. The defense was deemed insufficient, leading to the order for deposit and denial of leave to defend without securing the plaintiff's claim.

Evidence Submission and Decree for the Plaintiff:
The plaintiff submitted evidence through the Vice President and Company Secretary, confirming the correctness of the evidence affidavit and providing necessary documents. Consequently, the suit was decreed against the defendant for the claimed amount, with additional interest on the principal sum. The plaintiff was also granted costs under Section 35 of the CPC, with court fees paid and estimated litigation costs awarded.

Decree for Costs under Section 35 of CPC:
Given the commercial nature of the suit, the plaintiff was entitled to costs under Section 35 of the CPC. The court fees were paid, and reasonable litigation costs were estimated and awarded to the plaintiff. The decree for costs was specified without interest, and the drawn-up decree was expedited, allowing the plaintiff to move for execution without delay.